Gold Surges Above $5,100 Following Supreme Court Ruling on Tariffs
By John Nada·Feb 24, 2026·4 min read
Gold futures soared past $5,100 after a Supreme Court ruling declared Trump's tariffs illegal, highlighting the metal's role as a safe haven amid uncertainty.
Gold futures opened at $5,128.80 per troy ounce on Monday, marking a 0.9% increase from Friday's closing price of $5,080.90. This rise represents gold's first price opening over $5,100 since January 30. The latest climb above this psychological level is attributed to a Supreme Court ruling declaring President Trump's blanket tariffs illegal, which has injected a new wave of uncertainty into the market.
The Court's decision stated that the International Emergency Economic Powers Act (IEEPA) does not grant the President authority to impose tariffs without congressional approval. This ruling came in the wake of President Trump’s recent executive order, initially imposing a 10% global tariff under the Trade Act of 1974, which he later raised to 15%. While the Trade Act allows for temporary tariffs, any extension beyond 150 days requires Congress's endorsement. Such tariff uncertainty, coupled with ongoing geopolitical tensions between the U.S. and Iran, has contributed to the heightened demand for gold as a safe-haven asset.
The upward trend in gold prices reflects broader market sentiments. Over the past week, gold prices have increased by 3.5%, and over the past month, they have risen by 3.6%. The one-year performance is particularly striking, with gold gaining 74.5% compared to the previous year. This surge in value aligns with factors such as inflation concerns, central bank buying patterns, and geopolitical instability, reinforcing gold's position as a hedge against economic uncertainty.
The recent Supreme Court ruling has significant implications for investors and the financial landscape. It not only challenges the legality of unilateral tariff actions by the executive branch but also raises questions about the checks and balances in U.S. economic policy. The ruling emphasizes the critical role of Congress in trade agreements and tariff impositions, which may lead to a recalibration of future economic policies and market expectations.
Gold's appeal as an investment is multifaceted. As a commodity, it is often viewed as a hedge against inflation and currency fluctuations. The recent developments in U.S. trade policy are likely to amplify this perspective among investors. With the market reacting to these significant legal and economic shifts, the demand for gold is expected to remain robust in the face of ongoing uncertainty.
Moreover, understanding the dynamics of gold pricing is essential for investors. Gold is traded in various forms, with futures contracts providing liquidity and price predictability compared to physical gold. The interplay between supply and demand, influenced by geopolitical events, central bank policies, and market liquidity, will continue to shape gold's trajectory in the coming months. As investors navigate this complex landscape, the implications of tariff rulings and their potential economic fallout cannot be understated.
In the wake of the Supreme Court's ruling, investors may reconsider their strategies, particularly those heavily invested in sectors affected by tariffs. The uncertainty surrounding trade policies could lead to increased volatility in equity markets, making gold an attractive alternative. Many investors view gold not only as a safe haven but also as a strategic asset that can potentially offset losses in other areas of their portfolios.
In a climate where economic policies and geopolitical tensions are in constant flux, gold's resilience as a store of value is becoming increasingly apparent. The Supreme Court ruling has not only impacted the immediate market reaction but also sets a precedent for future trade policy discussions, particularly surrounding the limits of executive power in tariff imposition. Investors will be closely monitoring how these developments influence broader market trends and asset allocations moving forward.
The market's reaction to the ruling underscores gold's historical role during times of economic distress. In past crises, gold has often provided a buffer against inflation and currency depreciation. As inflation concerns rise, driven by various factors including central bank monetary policies and supply chain disruptions, gold's intrinsic value as a hedge becomes even more pronounced. The recent surge in demand for gold can be attributed to a combination of these factors, alongside the psychological impact of crossing the $5,100 threshold.
As we look at the broader landscape of gold investment, it is essential to note the different ways individuals can access gold. The spot price of gold is the current market price per ounce for physical gold as a raw material, while gold futures contracts offer a different investment mechanism that allows for liquidity and price predictability. Understanding these distinctions is crucial for investors looking to capitalize on gold's upward trajectory. With the gold market showing signs of strength, those interested in investing should remain vigilant about market trends and geopolitical developments that could further influence gold prices.